Bull Call Spread

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Buy 1 ITM Call + Sell 1 OTM Call

Limited Profits
If Price of Underlying >= Strike Price of Short Call
Max Profit = Strike Price of Short Call - Strike Price of Long Call - Net Premium Paid - Commissions Paid

Limited risk
If Price of Underlying <= Strike Price of Long Call Max Loss = Net Premium Paid + Commissions Paid Breakeven Point
Breakeven Point = Strike Price of Long Call + Net Premium Paid

 

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